ObamaCare Real Estate Tax

Question:  "OH NO!  If I sell my home do I have to pay a 3.8% tax on the proceeds! "
Answer: " I don't know!"

Sounds like a true politician right?  Well, it is true.  It is hard for anyone to tell you that answer because it is a very detailed response.  How much do you make?  Are you married filing jointly? How much money (capital gains) will you see on your sale?

I have noted a great piece of information that will help you determine the answer!  Click here and go to the National Association of Realtors press release.

It all depends on your income - If you make less than $200,000 per year and file a single return then the answer may be NO ($250,000/year married filing jointly).

Reverse Mortgages - Saving Homes

Reverse Mortgage - What is it? Simply put - If you owe 100K on your home that appriases for 200K and you refinance with a "Reverse Mortgage" your loan balance may (most likely will) go up! When you sell your home, later in life, your loan balance will be higher than what it was when you took out the loan.

Why? You don't have to pay any monthly payments! Yep, go ahead, refinance your 100K loan through a "Reverse Mortgage" and you might be able to NEVER PAY MONTHLY PAYMENTS AGAIN. Even if you live to a ripe old age of 120.



What's the "Catch"? You have to be 62 years or older. You have to have significant equity in your home. YOU MUST USE A HECM FHA PRODUCT (in my opinion)! What does that mean? A Home Equity Conversion Mortgage insured through FHA NOT a traditional "Reverse Mortgage".


Talk to a licensed Financial advisor for details. Make sure you mention that this is not the traditional "Reverse Mortgage". The bank will not take your home if you live too long!

Pros: You have a lot of equity in your home...That equity is great but it does not buy bread or support to you or a loved one...You can get some of your equity out of your home and put it to work for you. You can pay any amount of payments per month (including zero)! If your principal and interest exceeds the amount your home sells for when you die. FHA will pay back any losses to the lender.

It is a gamble from the banks perspective - FHA and the bank are in it to make money. They do hope you dont live to be 120. But, we hope you do...In the mean time...No more mortgage payments plus a possible "cash out" option on your equity to do with as you please.

Cons...Your loved ones may not be able to inherit the equity in your home. True..but, if they or you need money now...What does it matter?

Remember - I am not a financial advisor. I just feel as though this may be an attractive benefit and option for many people that are having trouble paying for their mortgages in the tight economy. Royal United Mortgage - Indianapolis Based - has an entire department working on HECM loans. Dont be scared - get information!